Archives

July 2006

Reflections

This came to me in an email from my father today.  It's significant from him since Mom passed away suddenly in March.

I don't know the author - but I wish I did.

 REFLECTIONS

You know, time has a way of moving quickly and catching you unaware of the passing years.

It seems just yesterday that I was young, just married and embarking on my new life with my mate.   And yet in a way, it seems like eons ago, and I wonder where all the years went.  I know that I lived them all...

And I have glimpses of how it was back then and of all my hopes and  dreams... But, here it is...the winter of my life and it catches me by surprise...

How did I get here so fast? Where did the years go and where did my  babies go? And where did my youth go?

I remember well... seeing older people through the years and  thinking that those older people were years away from me and that  winter was so far off that I could not fathom it or imagine fully  what it would be like...

But, here it is...wife retired and she's really getting gray...she   moves slower and I see an older woman now. She's in better shape   than me... but, I see the great change...  Not the one I married  who was young and vibrant... but, like me, her age is beginning to  show and we are now those older folks that we used to see and never thought we'd be.

Each day now, I find that just getting a shower is a real target   for the day! And taking a nap is not a treat anymore...it's  mandatory! Cause if I don't on my own free will...I just fall asleep where I sit!

And so, now I enter into this new season of my life unprepared for   all the aches and pains and the loss of strength and ability to go  and do things.

But, at least I know, that though the winter has come, and I'm not   sure how long it will last...This I know, that when it's over...its  over....Yes , I have regrets .There are things I wish I hadn't   done ,,,,,things I should have done. But indeed, there are many  things I'm happy to have done. Its all in a lifetime.. .

So, if you're not in your winter yet...let me remind you, that it  will be here faster than you think. So, whatever you would like to  accomplish in your life please do it quickly!

Life goes by quickly So, do what you can today, because you can  never be sure whether this is your winter or not!

 You have no promise that you will see all the seasons of your life...so, live for good today and say all the things that you want  your loved ones to remember...

"Life is a gift to you. The way you live your life is your gift to  those who came after. Make it a fantastic one."

LIVE IT WELL!!

5:05 PM - Jul. 30, 2006 - comments {0} - post comment

Staging kitchens

Kitchens can make or break the sale of your home.  Even if the prospective buyer doesn't really cook - and according to the National Restaurant Association sales have rise 12 fold since 1970, most people still want their kitchen to look modern and up-to-date.

Here are some things to watch out for:

1. Cluttered counters and walls - The more “stuff” on the counters, the less counter space your room will appear to have. The more bits and pieces plastered on the front of the fridge -- the more disorganized and cluttered the whole room will seem to be. The more “decorative” items you have strewn on the walls, the less able your potential buyer will be to imagine their stuff on the walls. The idea is to make the buyer imagine living here… the less of YOU they see, the more of THEM they can project.

2. Grimy floors/sink/cabinet tops/appliances - In a matter of moments, a floor can become gritty. Add to that a few water spots in the sink, a slight coffee stain from this morning’s essential cup of java and a few crumbs perching on top of the toaster… and what do you get? A kitchen that seems dirty and uninviting.
   
   Be sure you take a look at the kitchen with fresh eyes. Stand at the door and pretend you have never seen it before. (Imagine you are the grime police.) What do you see? If you were your mother-in-law (or maybe your mother) what “tiny little comments” might you make? Fix those. Now.
   
   Be so bold as to scrub the sink and SHINE it (pay special attention to behind the faucet and the rim around the sink – use an old toothbrush). Sweep, mop AND wax the floor. Thoroughly clean all appliances – even in the nooks and crannies. Make it simply spotless.

3. Unsavory smells/odors - Avoid cooking strong smelling food when your house is on the market. Day old fish, boiled cabbage, onions, etc., will turn off the most interested buyer. Avoid “covering up” smells with strong sprays, over-scented candles and products. Your favorite “gardenia” smell may send your potential buyer into sneezing fits.
   
   Instead, consider leaving out a single appliance – a bread machine, with the timer set to be mid-way through the baking process when the house is to be shown. How many people do you know that don’t like the smell of fresh bread? (Yeah, I can’t think of a single one either!)

4. Disorganized or insufficient storage space - If your cabinets are brimming with “stuff” or (goodness forbid) things tend to tumble when you open them, you need to remove all but the most essential items while showing your home. Pack up all the extras in a box (or boxes) and put them in storage. Eliminate your “junk drawer” and be sure that your plates, glasses and bowls are close together and are located close to where you will use them.
   
   Organize your pantry area and be sure all food items are neatly stacked and appropriately organized and are not located in various cabinets throughout the kitchen. Consolidate them into one general area.
   
   When you finish cleaning and packing away, make sure that what remains is neatly organized and that everything is located where you are most likely to use it. People WILL look in your cabinets. They will try to determine from your use of the area if there is enough storage space. If you can’t live in the space, why would they believe that they can? If you can’t keep it organized, how will they?

5. Dark and/or claustrophobic décor - Dark colors in the kitchen make it less inviting. It makes it harder to cook when you have to strain to see what you are doing. Ample light is a requirement. Natural light is best. If your kitchen doesn’t have quality lighting, you need to add it. Consider “natural light” light bulbs, add additional light sources under upper cabinets, and make the room brim with warm, bright light. If your lights flicker or are dull – replace them. In one kitchen I saw recently, there was no window to the outside, but the owner had added a mirror with “window panel” framing over the sink and a light above it to add light, reflect it and give the impression of a window. It wasn’t perfect, but I was a vast improvement over facing a solid wall while doing dishes.
   

People want a kitchen that makes them want to stay home and eat with their families.  Provide that vision and you'll go a long way toward selling your house.

2:37 PM - Jul. 28, 2006 - comments {0} - post comment

Vishing

And the bad guys strike again.  Now there is something called vishing.  Similar to Phishing on the internet where you are sent an email from a bank or credit card company look alike asking for information so they can steal your account information, now they have come up with a computer calling model.

According to the Denver Better Business Bureau it's called "Vishing" because it's phone fraud. The "V" is for voice. People are phoned at random by an automated telephone system and informed their credit card has been used illegally, a method similar to the email "Phishing" scams.

Victims are told to dial a fake 1-800 number that connects them to a service which asks for a credit card number or bank account number.  The criminals then use the information to steal your identity.
The BBB says this advanced scam uses something called VoIP, which stands for voice over Internet protocol. VoIP technology allows con artists to disguise their phone numbers so their victims will believe the call is from a legitimate financial institution.

Bottom line, NEVER, NEVER, NEVER give out your credit card or bank information to anyone unless YOU initiate the call to a phone number that YOU are familiar with.  Call the number on the back of your credit card if you have any questions.  They can tell you if there is actually a problem with your account.

2:28 PM - Jul. 27, 2006 - comments {0} - post comment

Bankrate.com

We have an incredible mortgage broker named Ty Mann of Cherry Creek Mortgage here in Denver.  Among the many wonderful things he does for us is send us a weekly report on interest rates and market changes that makes following mortgage interest at least bearable.

In this weeks report is an article on bankrate.com.  Rather than paraphrase it, we reprint it here with Ty's permission.

Just like King Kong clutching the top of the Empire State Building...Bankrate, the "800-pound Gorilla" of online home loan rates is falling under fire. The Bankrate website draws millions of visitors, as it promises to give a listing of companies and their rate and cost offerings for mortgage loans, and even passes that information on to most of America's largest newspapers as fact. It proclaims itself to be a tool for the consumer, just delivering information and advice...but as many reputable mortgage lenders have known all along, it turns out that consumers are finding the reality of Bankrate to be a little different.

A lawsuit is in the works against Bankrate, after hundreds of consumers complained about lenders who failed to deliver the rates and terms they promised on the website. In fact, one lender actually told a Bankrate employee that a consumer would need a "direct pipeline to God" in order to qualify for the rates and terms they advertise on the site. Why would a lender post rates and terms they are unwilling or unable to honor? To lure in consumers who truly want to believe that they are getting an interest rate or cost package that is significantly lower than all the competition. And by the time the consumer finds out they are not getting the package they were promised, they likely have wasted enough valuable time that they feel somewhat stuck to use whatever terms the lender hauls out.

Of course there are real reasons that the terms of a loan package can change mid-stream, but when working with a reputable lender - it would generally only be caused by a change from what was submitted on the loan application, such as a change in credit, income, employment, debts or assets.

So are there any reputable lenders on Bankrate? Yes, of course. And some of those lenders were the ones who prompted the lawsuit in the first place. As they were posting real interest rates and terms they could actually honor, they could see that consumers would instead be contacting the less-reputable lenders who were posting completely unrealistic rate and cost offers. And the consumer might not find out the difference until it was too late. Mortgage lenders get their money from essentially the same places - so anytime there is a very large difference between quotes on identical programs, it pays to ask some questions.

Bottom line - the internet at large can be a great place to gain basic trends and information about a home loan, but the Bankrate lawsuit illustrates the need to work with a Trusted Advisor. A home loan is generally the largest financial transaction of your entire life - working with a real professional who can advise you on correct strategies and programs for your needs is a must. And like your mom or dad always used to say - you get what you pay for, and solid advice from a real professional may cost more than a bargain basement operation.

Most importantly, remember that the absolute lowest rate and terms on the WRONG financial strategy or loan program for your life will prove to be far more costly than a competitive rate package on the RIGHT strategy, which correctly fits your financial goals and needs.

Thanks, Ty.  This is important information.

2:19 PM - Jul. 26, 2006 - comments {0} - post comment

Bogus appraisals

There continues to be publicity about property appraisals which bear no relation to the reality of the surrounding neighborhood.

RISMedia recently had an example of a manufactured home in California which appraised at purchase for almost $60,000 higher than the surrounding homes.  Now in foreclosure, the sales price was less than half of the original appraisal. 

What gives?

Although we are not appraisers, we have been in the business for over 30 years.  Our perception is that most people think an appraisal at time of purchase is just that - an appraisal of the home on the open market.  We believe it is, instead, an indication of current value, i.e., can the appraiser justify the loan amount given the comparables in the area.  That is an entirely different thing.

Remember, at least in Colorado, the appraiser is hired by the lending institution - not the buyer and certainly not the seller.  So his client is the BANK.  The appraiser wants to make sure the bank is making a good loan.  For the past several years here the appraisal has come in at - or very slightly above - the sales price.  So even if you know the value of the home is actually several thousand dollars more than what you paid for it, the appraiser is telling the bank that they are making a good loan. Thus the appraised value is at sales price.  It is also a way for some appraisers - not all certainly - to CYA.  Rather than give an inflated value they appraise it at sales price.

Where bogus appraisals come in is when the appraiser confirms a value WAY above market.  That doesn't happen often around here.  Even though we are the foreclosure capital of the world right now, bogus appraisals are not the villains.  Appraisers in Colorado are licensed, bonded and carry insurance just as real estate brokers do.  It's not worth it to most of them to bring in a bogus appraisal.

The bottom line is, if you think  your appraisal is out of line, get another one.  The few hundred extra dollars you spend might save you a lot of grief in the future.

2:06 PM - Jul. 25, 2006 - comments {0} - post comment

The BEST place to live

Money magazine rates Ft. Collins Colorado the best small town in America!  The list includes cities across the US.

Based on income, education, cultural events, recreation and other intangibles they have voted Ft. Collins the best this year.

All these "best of" lists are pretty subjective.  But having gone to CSU (go Rams!) I must say I concur.  Ft. Collins has always been a clean, friendly town.  With the influence of the university it also has lots of cultural and other events that towns of similar size wouldn't be able to attract.  Just a couple of years ago it was also voted one of the top 10 places to retire.

And it's only 60 miles or so from Denver so there is easy access to the airport and the sporting and cultural events of the big city.

Problem is, everyone reads these things and moves there.  Then it's not a small city anymore.

3:12 PM - Jul. 19, 2006 - comments {0} - post comment

Banks in real estate

Interesting article in The Denver Post stating that Colorado banks have increased their real estate portfolios in the past five years.

Seems that since 2001 Colorado bank holdings in real estate have increased from 48.8% to 59%.  There is a similar trend nationwide.  Colorado Division of Banking commissioner says he "appreciates the concern" about real estate concentration.  Even though banks have posted solid earnings quarter after quarter.

So why do banks invest in real estate?  Because it's safer than the stock market and historically offers more long term gain.  Is there a possible down side?  Yes, if foreclosures spike and home builders invest in less land for new construction bank earnings could go down in the short term.

But there is a lesson here.  If banks, whose stock in trade is conservative investment strategies, feel that real estate is a better investment, shouldn't the average investor feel safe putting money into real estate as opposed to the stock market, the bond market or other securities?

Listen to your banker.  Invest in real estate.

3:23 PM - Jul. 18, 2006 - comments {0} - post comment

Free cash

So, you're standing at the ATM machine and your kid is wound around your ankles crying and the machine asks you

There is a $3.00 charge to use this machine, do you wish to continue?

 And you're thinking, no stupid machine, I'm standing here punching this button because I don't want to continue!

But wait!  There may be a change coming soon.  Seems that consumers are fed up with paying to access their own money.  Banks are making an estimated $4.2 billion per year charging us to access our own money (that's billion with a big B!).  But some banks are starting to realize this a public relations nightmare and are actually putting YOUR concerns before THEIR profit.  Smaller banks and credit unions in particular are willing to pay the machine servicers themselves rather than charge their customers.

To get a list of free ATM machines in your area you can go to either Moneypass or Allpoint.

 It's about time, don't you think?

3:13 PM - Jul. 17, 2006 - comments {0} - post comment

If you have to ask, you probably can't afford it

Headlines today about the purchase by Tommy Mottola (Mariah Carey's ex) of a 949 acre ranch near Redstone Colorado for $47 million in cash.

The Crystal Island Ranch is on the Crystal River near Redstone.  Redstone is an old mining town west of Aspen and south of Glenwood Springs.  The entire town is an historic district and consists of shops, B&B's and galleries.  It's one of our favorite places in the world.

Also in the news today - Prince Bandar has put his Aspen estate on the market for $135 million.  Coming in at 56,000 square feet with 15 bedrooms, an indoor swimming pool, horse stables, tennis court and other assorted amenitites, it sits on 95 very expensive acres.

Let's do the math.  With a 10% down mortgage (that's $13,500,000!) at a 30 year fixed rate of 6.75%, you'd be looking at a monthly payment of $788,046.69.  That's before taxes and insurance.  Hmmm, maybe one of those new 40 year mortgages would make more sense.

Of course, if you need a buyer's agent to assist in the purchase of this palace, we'd be pleased to lend our expertise.

4:30 PM - Jul. 15, 2006 - comments {0} - post comment

Happy Birthday?

Yesterday was my birthday.  Congrats you say!!  Not so fast, I say.

Since this is one of those (5) year birthdays it means that my health insurance will surely rise dramatically at next renewal this fall.  I think it also means I have to renew my driver's license.  I better check that...

We had dinner with some friends at a new-to-us Italian place.  When we drove up both my friend and I recognized it as an old dairy/ice cream place we had been to may times as kids.  Now it's Italian.  Made us wonder what would become of us when we got past our useful life.  Would we have a completely different use as well?? Hopefully we will turn out as good as this place was in our new incarnations.

We got to talking about other morbid things on the way home.  Cemeteries, burials, cremations...

Maybe I'm glad at this age my birthday only comes once a year.

6:38 PM - Jul. 13, 2006 - comments {2} - post comment

Is it green yet?

Mold!  It's becoming a problem everywhere you look.  Most insurance companies now exclude mold damage and repair in homeowner's policies.  You're thinking, but I live in a dry climate, I can't have a mold problem.

Not so fast!

According to American Risk Management Resources, dry states intermingle with humid states more than you'd think.  The top 10 states with the most mold according to ARMR are:

Top 10 Relative Hazard Mold Ranking

Texas 2.95
Florida 2.50
Oklahoma 2.45
South Carolina 1.91
Nevada 1.90
Arizona 1.90
California 1.73
South Dakota 1.47
Tennessee 1.33
Kansas 1.25

Note Nevada and Arizona in that group along with fairly dry California and Kansas.

The bottom 5 states are:

Bottom 5 Relative Hazard Mold Ranking
Wisconsin .06
West Virginia .07
Alabama .13
Massachusetts .18
Minnesota .19

Believe me, I was born in West Virginia and if there is a more hot and humid state in August, I don't know where it is!

Check you homeowner's policy.  Your coverage may not be as good as you think.

7:10 PM - Jul. 11, 2006 - comments {0} - post comment

Is your teeter totter in balance?

An interesting article in today's RISMedia says that the real estate market in the US is in perfect balance - approximately as many homes for sale as there are buyer's to purchase them.

The only problem with this idea is that it's a national survey and buyers and sellers are dealing in a local market.

In Denver for the past several years we have definitely been in a buyers market.  Some sellers are still adjusting to that fact but it is true.  It is very common for buyers to offer thousands less than sellers are asking and moving on to the next house if they can't make a quick deal.

We had an out of state couple this past week who made a below asking offer of the seller but did give most of the other things the seller wanted including lots of time to find a new home.  The sellers dithered.  In the mean time, the buyers were out looking at other properties and found one they liked better - for more money! Result?  Buyers withdrew offer on house #1 to make an offer on house #2.

We understand that in parts of the northeast it is still a seller's market, but most of the US is undergoing a sea change from the past few years.

If you're thinking of selling in this market, it would be wise to make sure you have balance - in your asking price and in your ability to respond with a quick answer to a potential offer.

5:40 PM - Jul. 10, 2006 - comments {0} - post comment

Defending America

As many of you may know, Mack's grandson is serving with the Army Reserves in Iraq.  He has been there since last fall and will be there for a few more months yet.

During that time he has had to leave his new bride, missed the excitement of her pregnancy and missed the birth of his first child.

Even though he is able to communicate via email on a daily basis and even has a cell phone which he can use when off duty, it is still very stressful for all of us.

He did get to come home for two weeks about a month after the birth of his son.  His family was overjoyed to see him and hold him in their arms.

Despite all this, he still believes in the mission and, most of all, believes in his country.  He is proud to serve in whatever capacity he is needed.

He knows there is great dissent in this country over this conflict.  We believe he understands the reasons for the disagreement.

It doesn't deter him.

So this 4th of July when we celebrate our independence, take a minute to remember what it took to get what we have.  And please remember those who are serving in the armed forces to protect our freedoms.

They will all appreciate it.

12:55 PM - Jul. 3, 2006 - comments {1} - post comment

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